E.R.S. Canby to B. F, Flanders, September 10, 1864

Hon. B. F, FLANDERS, Supervising Special Agent Treasury Dept., New Orleans, La.:

Sir: I have the honor to transmit herewith, inclosed for your information, copy of a permit which I have given for the steamer Rob Roy and her cargo of cotton to proceed from the mouth of Red River to this city. The evidence that I have in relation to this cotton satisfies me that the rebel government has an interest in it to the extent of onehalf the cotton when delivered, or at least one-half of the value of the cotton at the place of delivery. The right of capture under the laws of war probably applies to the vessel and her entire cargo, but as it is represented that loyal parties in this city, under the President’s license, have in good faith acquired equitable interest in the cotton, it will be turned over to you, subject to the decision of the Secretary of the Treasury under the act of March 12, 1863. The evidence upon which this action is based is: First. The order of General E. Kirby Smith of June 1, 1863, impressing half the cotton in private hands in the TransMississippi Department for the use of the rebel government. Second. The prohibition by the rebel authorities of the exportation of cotton unless the conditions prescribed by them were complied with. Third. The fact that these conditions were complied with, as evidenced by the protection given the vessel and her cargo by rebel guards and passes given by the rebel authorities.

Very respectfully, sir, your obedient servant,